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What You Need to Know about Financial Aid PowerPoint Presentation
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What You Need to Know about Financial Aid

What You Need to Know about Financial Aid

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What You Need to Know about Financial Aid

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  1. What You Need to Know about Financial Aid

  2. Topics We Will Discuss Tonight • Free Application for Federal Student Aid (FAFSA) • IRS Data Retrieval Tool • Special Circumstances • Categories, types, and sources of financial aid • Reciprocity • Post-Secondary Tax Credits

  3. Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form (paper form only by special request at • If filed electronically will need a Federal Student Aid Personal Identification Number (FSA PIN) for the student and the parent each to be able to sign the FAFSA •

  4. FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • Colleges may set early awarding FAFSA filing deadlines • IRS Data Retrieval Tool-if not used will more than likely cause the student to be selected for verification • Tool available early February 3, 2013 • If 2012 tax return filed electronically, can use IRS Data Retrieval Tool 2 weeks after filing • If 2012 tax return filed by paper, can use IRS Data Retrieval Tool 6-8 weeks after filing

  5. Who Can Not Use the IRS Data Retrieval Tool? Has not yet filed the 2013 federal tax return, or filed it recently Moved since filing their federal tax return and does not remember the address on the federal tax return Married students or parents who filed separate tax returns from their spouse Married student or parent who files as Head of Household Married student or parent whose marital status has changed since December 31 of tax year Student or parent who has filed an amended tax return for 2013

  6. Verification • If student is selected for verification will have to provide further information to school for at least one of these categories: • Number in household and number attending post-secondary school • Use IRS Data Retrieval tool or submit IRS Tax Transcript • Child Support Paid • SNAP Benefits Received • HS Transcript (proof of Graduation) • Notarized Proof of Identity and statement of Educational Purpose

  7. FAFSA on the Web

  8. FAFSA Login

  9. 2013/14 Award Year

  10. Student Demographic Information

  11. Student Eligibility

  12. Student Eligibility continued

  13. School Selection

  14. Add the School to the FAFSA

  15. Dependency Questions

  16. Further Dependency Questions

  17. Dependency Status Results

  18. Who is the Parent in the case of Divorce? • Biological or Adoptive parent the student has lived with the most in the last year. (If lived equally with both, then parent who provided the most financial support.) • If a Biological or Adoptive parent has remarried the step-parent’s information must be included. • Foster parents, legal guardians and other relatives are not considered the parent-their information is not included on the FAFSA.

  19. Parent Demographic Information

  20. IRS Data Retrieval Tool

  21. Income Information

  22. Income Information Continued

  23. Untaxed Income

  24. Assets (Net Value)

  25. Sign & Submit

  26. Confirmation Page • Confirmation Number • Data Release Number (DRN) • EFC estimate • Pell Grant and Direct Loan estimates • Option for parents to transfer parent’s info to another application for another child • Option for some states to apply for State Grant

  27. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA • Student with PIN may view SAR on-line at

  28. FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews ISIR • May request additional documentation: • Verification • proof of homelessness or ward of the court status • proof that a sibling is enrolled in college • Will generally not send you an award letter unless an Admissions Application has been submitted

  29. Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web ( if student has a PIN; • Submitting documentation to college’s financial aid office

  30. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parent information

  31. Federal Grants (page 8) • Money thatdoes not have to be paid back • Federal Pell Grant • Awarded based on Expected Family contribution (EFC) • For 2012/13, Up to $5550 for the award year if EFC between 0 and 4995 • Federal TEACH Grant • If planning to teach in low income or high need areas • Become an Unsubsidized Loan if do not fulfill teaching obligation • Up to $4000 per award year

  32. Campus Based Aid • Limited amount of Funding • Generally based on lowest EFC (zero) and first come first served • Federal Supplemental Opportunity Grant (page 8) • Federal Work Study (page 8) • Federal Perkins Loan (page 9)

  33. Federal Student Loans (pages 9-10) • Money students and parents borrow to help pay college expenses • Students-Subsidized and Unsubsidized Stafford Loans • 6.8% interest rate • Parents-PLUS Loans • 7.9% interest rate • Approved Credit Check Required • Interest on Unsubsidized and PLUS loans begins accruing with the first disbursement of loan • Principal repayment usually begins after education is finished

  34. Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill, or unique characteristic • Academic • Athletic • Organization (Civic, Church, Employer) • Skill/Interest Do not use a scholarship search that requires you to pay money-listing of free scholarship searches at end of presentation

  35. South Dakota Jump Start Scholarship • $1812.90 distributed equally across terms for the first year only • Student completes SD public H.S. in 3 years or less • Resident of SD and applies within 1 year of graduating (excluding active duty service) • Enrolls in SD located college, university, or technical school •

  36. SD-Dakota Corps Scholarship Priority Deadline February 1, 2013 Maximum Tuition and generally applicable fees for 16 undergraduate credits at a SD public university Renewable for up to 4 years based on full time student, 2.8 CGPA, and other requirements Graduate from an accredited South Dakota high school with a Grade Point Average (GPA of) 2.8 or greater on a 4.0 scale.  Home schooled students will be allowed to provide supplemental information if this requirement is not applicable. Have a composite ACT score of24 or greater (or the SAT equivalent). Agree, in writing, to stay in South Dakota and work in a critical need occupation after graduation for as many years as the scholarship was received, plus one year. HS Math or Science Teacher Special Education Teacher Career & Technical Education Teacher Accountant/Auditor Engineer (except mining) Information Technology Registered Nurse Apply for the Dakota Corps Scholarship for a school period that begins within one year of high school graduation, or within one year of release from active duty of an active component of the armed forces.   Attend a participating South Dakota college as an undergraduate student in a program that will prepare the student to work in a critical need occupation. Be a U.S. citizen or U.S. national. Among those that qualify, recipients will be chosen based on GPA, test scores, activities, honors, community service, and a written essay. Not all eligible applicants will be selected for a scholarship. From the total pool of applicants, a limited number of recipients will be selected. Also, some South Dakota colleges may limit the number of scholarship recipients they accept, or not participate at all.

  37. South Dakota Opportunity Scholarship Initial Eligibility Requirements-if these requirements are met the scholarship will be awarded Be a resident of South Dakota at time of high school graduation. Have an ACT composite score of 24 or higher before beginning postsecondary education. Or SAT score, the sum of the verbal and mathematics scores must be at least 1090. Complete high school course requirements with no final grade below a C and a cumulative high school GPA of 3.0 Attend a university, college, or technical school that provides instruction from a campus located in South Dakota. Enter into program within 5 years of high school graduation, or within 1 year of the student's release from active duty military service (if that release is within 5 years of the date of the student's high school graduation). $1,000-1st year of attendance must complete 30 semester credits $1,000-2nd year of attendance must complete 30 additional semester credits $1,000-3rd year of attendance must complete 30 additional semester credits $2,000-4th year of attendance must complete 30 additional semester credits

  38. Reciprocity • South Dakota/Minnesota Reciprocity • Except for University of Minnesota reciprocity is automatic • Resident of SD eligible to attend public colleges and universities in MN will (in general) pay the MN resident tuition rate • If attending University of MN need to apply to the Reciprocity Office 2 months before terms begins

  39. Post-Secondary Tax CreditsCONSULT YOUR TAX SPECIALIST • American Opportunity Credit • Sliding eligibility scale by income • $2,500 (reduction in taxes) per student for up to 4 years of education • Lifetime Learning Credit • $2,000 (reduction in taxes) for qualified education expenses paid for all students combined, unlimited number of years • Tuition and Fees Deduction • Eligible if Adjusted Gross Income is equal to or less than $80,000 (single) or $160,000 (joint) • Reduction to income of up to $4,000 for qualified education expenses paid during the year • Student Loan Interest Deduction • Eligible if Adjusted Gross Income is equal to or less than $75,000 (single) or $150,000 (joint) • Reduction to income of up to $2,500 for interest paid on student loan

  40. Financial Aid Websites • • • • • •